Lifetime Brands to Acquire the Pfaltzgraff Co.
WESTBURY, N.Y.--(BUSINESS WIRE)--June 17, 2005--LIFETIME BRANDS, INC. (NASDAQ NM:LCUT), a leading designer, marketer and distributor of nationally branded consumer products for the home, today announced it has signed an agreement to acquire the business and certain assets of The Pfaltzgraff Co. ("Pfaltzgraff"), one of America's leading designers and marketers of dinnerware and tabletop accessories for the home.
Established in 1811, Pfaltzgraff had sales in 2004 of approximately $148 million. Its products are broadly distributed through retail chains and sold through company-owned factory stores as well as through Internet and catalog operations.
"This acquisition represents an extraordinary opportunity for Lifetime Brands," commented Jeffrey Siegel, Chairman, President and Chief Executive Officer. "Pfaltzgraff fits in perfectly with our strategy of assembling a portfolio of premier national brands known for high quality and innovative design. One of the most recognizable companies in housewares, Pfaltzgraff adds an immediate and powerful presence to the tabletop category of our business.
"Organizationally, this is also a great fit for Lifetime," Mr. Siegel added. "We committed to becoming a major presence in tabletop in 2004, when we acquired the business of Excel Importing Corp. and recruited Steven Lizak, formerly Senior Vice President of Sales and Marketing at Mikasa/Arc International. The acquisition of Pfaltzgraff will significantly accelerate our expansion into this important category."
Assuming that the transaction closes in July, Lifetime expects the Pfaltzgraff business to contribute approximately $72 million in revenues in 2005 and to be nominally profitable for the year. The transaction is subject to customary closing conditions and adjustments. Lifetime expects to fund the transaction through its credit facility.
Marsha Everton, President and Chief Executive Officer of Pfaltzgraff, stated, "Lifetime and Pfaltzgraff complement each other exceptionally well. With access to Lifetime's more extensive marketing reach, the strength of its powerful portfolio of related brands as well as its enhanced product development and sourcing capabilities, Pfaltzgraff will be able to compete even more effectively in the marketplace.
"The sale is also a win-win for Pfaltzgraff's very dedicated customers as well as the retail partners that have helped make our brand what it is today. Among other things, it ensures continuity of the patterns and styles beloved by our loyal customers. At the same time, we will benefit from Lifetime's emphasis on innovative design, which will keep Pfaltzgraff growing and vital for the future."
Steven Lizak will serve as President of the Lifetime Brands tabletop division and Marsha Everton will continue as President of Pfaltzgraff. The combined businesses will give Lifetime a powerful portfolio of nationally-recognized tabletop brands, including Pfaltzgraff(R), PFZ(TM), Sabatier(R), Nautica(R), Retroneu(R), Joseph Abboud Environments(R) and Kathy Ireland(R). Pfaltzgraff's direct to consumer operations, design studios and distribution facilities will remain in York, Pennsylvania.
Lifetime Brands is a leading designer, marketer and distributor of kitchenware, cutlery & cutting boards, bakeware & cookware, pantryware & spices, tabletop and bath accessories, marketing its products under various trade names, including Farberware(R), KitchenAid(R), Cuisinart(R), Hoffritz(R), Sabatier(R), DBK(TM)-Daniel Boulud Kitchen, Joseph Abboud Environments(R), Roshco(R), Baker's Advantage(R), Kamenstein(R), CasaModa(TM), Kathy Ireland(R), and :USE(R). Lifetime's products are distributed through almost every major retailer in the United States.
The information herein contains certain forward-looking statements including statements concerning the Company's future prospects. These statements involve risks and uncertainties, including risks relating to general economic conditions and risks relating to the Company's operations, such as the risk of loss of major customers and risks relating to changes in demand for the Company's products, as detailed from time to time in the Company's filings with the Securities and Exchange Commission.
CONTACT: Lifetime Brands, Inc.
Robert McNally, 516-683-6000
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Harriet Fried, 212-838-3777
hfried@lhai.com
SOURCE: Lifetime Brands, Inc.